B5 Biodiesel in Stages, Starting with Putrajaya

KUALA LUMPUR: The government will introduce the

biodiesel B5 in stages starting with Putrajaya early next month,

Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok

said.


“The price will be fixed and we have chosen the petrol stations to

initially offer the product in Putrajaya,” he told reporters at the Palm

International Nutra-Cosmeceutical 2011 (PINC 2011) conference here

yesterday.

The implementation of the biodiesel B5 mandate, he

said, will not inconvenience motorists as the price mechanism will be

determined by the Ministry of Finance (MOF).

B5 is basically a blend of 95 per cent regular petroleum-based diesel and five per cent palm oil-based biodiesel.

The government has put aside RM200 million to set up blending

facilities nationwide to blend diesel with palm methyl ester from June

2011 to kick-start sales of the green fuel, after a five-year delay.

Malaysia has been struggling to implement a mandate to push the blended

fuel and support the palm oil industry that was first introduced in

2007 as more taxpayers’ money is needed to subsidise biofuel blends to

match diesel prices at the pumps.

However, the country is

committed to pushing the Green Technology (GT) agenda as a key source of

sustainable economic growth while safeguarding the environment.

Malaysia has targeted to reduce its carbon emission intensity by up to 40 per cent.

Meanwhile, chairman of Malaysian Palm Oil Council, Datuk Lee Yeow Chor

expects Malaysian palm oil prices to remain relatively strong in the

coming months at the back of a strong export demand for the commodity.

“For the first 15 days of this month, there has been growth of over 20

per cent in terms of export,” he said, adding that the current unusual

warm weather patterns would keep prices up for the commodity.

Malaysian crude palm oil futures climbed to a two-week high on Wednesday

as traders bet on strong demand in the next few weeks as top vegetable

oil buyers India and China restock.

PINC 2011, themed

“Bioactives for a Healthy Lifestyle”, is organised to highlight and

showcase the Malaysian palm bioactive industry and revisit the numerous

developments within the nutra-cosmeceutical industry.

There are presentations on the role and benefits of palm tocotrienols, carotenoids and phenolics during the two-day event.

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